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RPM Reports Fiscal 2009 Fourth-Quarter and Year-End Results

- Despite sales declines for quarter and year, net income exceeds year-ago levels, which included one-time charge
- Operating cash flow sets record, up 13.8% over fiscal 2008 levels
- Lower cost structure improves earnings outlook for Fiscal 2010

MEDINA, Ohio, July 27 /PRNewswire-FirstCall/ -- RPM International Inc. (NYSE: RPM) today reported higher net income for its fourth quarter and fiscal year ended May 31, 2009. Fiscal 2008 net income included a one-time pre-tax charge of $288.1 million in the fourth quarter to increase the company's accrual for asbestos-related liabilities, while the fiscal 2009 fourth quarter and year included a one-time charge of $15.5 million for goodwill and other intangible asset impairments in the company's industrial segment. Excluding these one-time charges, fiscal 2009 net income declined for both the quarter and full year. Sales also declined for both the fourth quarter and fiscal year.

Fiscal Fourth-Quarter Results

Sales for the quarter fell 20.3% to $857.3 million from $1.08 billion in the 2008 fourth quarter, with the company's industrial and consumer segments both reporting lower results.

Fourth-quarter net income was $39.3 million, or $0.31 per diluted share, compared to a year-ago loss of $87.6 million, or $0.73 per diluted share, as a result of the one-time fiscal 2008 charge. Excluding asbestos and impairment-related charges, fiscal 2009 fourth-quarter net income declined 44.0% to $54.6 million, or $0.43 per diluted share, from the $97.5 million, or $0.75 per diluted share, earned a year ago.

Earnings before interest and taxes (EBIT) of $83.4 million in the fiscal 2009 fourth quarter compares to a loss of $145.0 million a year ago. Excluding one-time charges for both asbestos and impairment, fiscal 2009 fourth-quarter EBIT dropped 30.9% to $98.9 million from $143.1 million a year ago.

Fourth-Quarter Segment Sales and Earnings

Sales in RPM's industrial segment declined 21.9% in the fiscal 2009 fourth quarter, to $536.1 million from $686.0 million a year ago. Organic sales fell 23.5%, including a net foreign exchange loss of 7.2%, partially offset by a gain of 1.6% from acquisitions. Industrial segment EBIT declined to $35.2 million from $89.4 million in the fiscal 2008 fourth quarter. Excluding the one-time impairment charge in this segment during fiscal 2009, EBIT declined 43.3% to $50.7 million.

Consumer segment sales fell 17.6%, to $321.2 million from $390.0 million in the fiscal 2008 fourth quarter. The decline was all organic, including a net foreign exchange loss of 3.2%. Segment EBIT declined by 21.1% to $52.6 million from $66.7 million a year ago.

Fiscal 2009 Sales and Earnings

Fiscal 2009 sales fell 7.6% to $3.37 billion from $3.64 billion a year ago. Net income was $119.6 million, or $0.93 per diluted share, compared to $47.7 million, or $0.39 per diluted share in fiscal 2008. Excluding one-time asbestos and impairment-related charges, RPM's fiscal 2009 net income fell 42.1% to $134.9 million, or $1.05 per diluted share, from the $232.8 million, or $1.81 per diluted share, earned a year ago.

EBIT for the year was $241.1 million compared to $86.0 million in fiscal 2008. Excluding one-time charges in both years, EBIT fell by 31.4% to $256.6 million from $374.1 million in fiscal 2008.

Industrial segment sales, which represented 67% of total sales, declined 4.3% in fiscal 2009 to $2.27 billion from $2.37 billion a year ago. The organic sales decline was 9.5%, including net foreign exchange losses of 4.1%, partially offset by acquisition growth of 5.2%. Industrial segment EBIT in fiscal 2009 was off 32.5% from the prior year, to $176.8 million from $261.8 million. Excluding the one-time impairment charge in fiscal 2009, industrial segment EBIT was down 26.6% to $192.3 million.

RPM's consumer segment sales, accounting for 33% of total sales, fell 13.6% to $1.10 billion from $1.28 billion in fiscal 2008. The organic decline was 11.3%, including 2.1% in net foreign exchange losses, while net divestitures represented 2.3% of the total. Consumer segment EBIT was off 33.7% in fiscal 2009, to $106.8 million from $161.1 million a year ago.

Capital Structure, Cash Flow and Liquidity

RPM's fiscal 2009 cash from operations was a record $267.0 million, up 13.8% from the $234.7 million reported a year ago. Capital expenditures for the year were $55.0 million, compared to depreciation of $62.4 million. After capital expenditures and cash dividends to shareholders, free cash flow for the year totaled $110.2 million, a 52.5% increase over last year. Total debt at May 31, 2009 was $930.8 million compared to $1.1 billion a year ago. The company's net (of cash) debt-to-total capitalization ratio was 37.2%, compared to 42.6% at the end of fiscal 2008, with liquidity, including cash and long-term credit facilities, at $622 million.

During the fourth quarter of fiscal 2009, RPM paid $17.2 million pre-tax for indemnity and defense costs for asbestos litigation, compared to $15.0 million in the fiscal 2008 final period. For the full fiscal year, RPM paid $69.4 million in pre-tax asbestos-related indemnity and defense costs, compared to $82.6 million a year ago. The company's total accrual for future asbestos liabilities at year-end was $490.3 million.

"I am proud of the extraordinary actions of RPM employees worldwide to respond to these unprecedented economic challenges," stated Frank C. Sullivan, chairman and chief executive officer. "A significant part of that response was the generation of record levels of after-tax cash from operations and free cash flow. With a strong balance sheet, historically high levels of liquidity and record cash flow, we have been able to maintain our employee retirement, health care and benefit plans without change. We've also maintained our cash dividend to shareholders, which has increased for 35 consecutive years, and provides a real cash return during this period of market dislocation."

Business Outlook

"Our outlook has improved since we first provided guidance for our 2010 fiscal year in April. Our consumer businesses have turned the corner in this difficult economy. With housing turnover, the sale of foreclosed homes and new home construction beginning to show improvement on a regionbyregion basis, we are seeing an uptick in the sale of small project redecoration, patch-and-repair and weatherization products. This, along with the aggressive expense reduction actions taken during the past fiscal year, will enable our consumer businesses to generate consistent earnings growth throughout the year with a modest increase in sales," stated Sullivan.

"While our industrial businesses will continue to face economic challenges as a result of weak commercial construction and industrial capital spending activity, our prior-year actions have effectively reduced the breakeven point at every RPM business. This lower cost structure will allow our industrial operations to improve performance compared to the final six months of fiscal 2009. We expect a recovery in our industrial markets sometime in the spring of 2010. Depending on the timing of the expected industrial market turnaround, we expect earnings per share for RPM to grow in the range of 5% to 25% on a consolidated basis for the fiscal year ending May 31, 2010, from the adjusted $1.05 per diluted share earned in fiscal 2009," he stated.

Webcast and Conference Call Information

Management will host a conference call to further discuss these results beginning at 10:00 a.m. EDT today. The call can be accessed by dialing 800-706-7749 or 617-614-3474 for international callers. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. The call, which will last approximately one hour, will be open to the public, but only financial analysts will be permitted to ask questions. The media and all other participants will be in a listen-only mode.

For those unable to listen to the live call, a replay will be available from approximately 12:00 p.m. EDT on July 27, 2009 until 11:59 p.m. EDT on August 3, 2009. The replay can be accessed by dialing 888-286-8010 or 617-801-6888 for international callers. The access code is 25665861. The call also will be available both live and for replay, and as a written transcript, via the RPM web site at www.rpminc.com.

About RPM

RPM International Inc., a holding company, owns subsidiaries that are world leaders in specialty coatings and sealants serving both industrial and consumer markets. RPM's industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals. Industrial brands include Stonhard, Tremco, illbruck, Carboline, Day-Glo, Euco and Dryvit. RPM's consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement, boat repair and maintenance, and by hobbyists. Consumer brands include Zinsser, Rust-Oleum, DAP, Varathane and Testors.

For more information, contact P. Kelly Tompkins, executive vice president - administration and chief financial officer, at 330-273-5090 or ktompkins@rpminc.com.

This press release contains "forward-looking statements" relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us, and are subject to uncertainties and factors (including those specified below) which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) general economic conditions; (b) the price, supply and capacity of raw materials, including assorted pigments, resins, solvents and other natural gas- and oil-based materials; packaging, including plastic containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our construction and chemicals businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (h) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (i) risks related to the adequacy of our contingent liabilities, including for asbestos-related claims; and (j) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended May 31, 2008, as the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

CONSOLIDATED STATEMENTS OF INCOME

IN THOUSANDS, EXCEPT PER SHARE DATA

                                                 AS REPORTED
                                  ------------------------------------------
                                   Three Months Ended        Year Ended
                                         May 31,               May 31,
                                  -------------------- ---------------------
                                     2009       2008       2009      2008
                                  ---------- --------- ---------- ----------
                                              (Unaudited)
                                  -------------------------------

    Net Sales                      $857,341 $1,075,971 $3,368,167 $3,643,791
    Cost of sales                   499,225    620,319  2,015,078  2,145,254
                                  --------- ---------- ---------- ----------
    Gross profit                    358,116    455,652  1,353,089  1,498,537
    Selling, general &
     administrative expenses        259,215    312,506  1,096,505  1,124,419
    Asbestos-related charges                   288,100               288,100

Goodwill and other intangible

     asset impairments               15,462                15,462
    Interest expense                 12,151     15,500     54,460     60,476

Investment expense (income),

     net                              6,603     (2,823)     5,794    (13,512)
                                  --------- ---------- ---------- ----------

Income (loss) before income

     taxes                           64,685   (157,631)   180,868     39,054

Provision (benefit) for income

     taxes                           25,379    (70,067)    61,252     (8,655)
                                  --------- ---------- ---------- ----------
    Net Income (Loss)               $39,306   $(87,564)  $119,616    $47,709
                                  ========= ========== ========== ==========
    Basic earnings (loss) per
     share of common stock            $0.31     $(0.73)     $0.95      $0.40
                                  ========= ========== ========== ==========

Diluted earnings (loss) per

     share of common stock            $0.31     $(0.73)     $0.93      $0.39
                                  ========= ========== ========== ==========

Average shares of common stock

     outstanding - basic            126,603    120,296    126,373    120,151
                                  ========= ========== ========== ==========

Average shares of common stock

     outstanding - diluted          127,499    120,296    128,255    130,539
                                  ========= ========== ========== ==========



                                                ADJUSTED (a)
                                  ------------------------------------------
                                   Three Months Ended        Year Ended
                                         May 31,               May 31,
                                  -------------------- ---------------------
                                     2009       2008       2009      2008
                                  ---------- --------- ---------- ----------
                                                 (Unaudited)
                                  ------------------------------------------

    Net Sales                      $857,341 $1,075,971 $3,368,167 $3,643,791
    Cost of sales                   499,225    620,319  2,015,078  2,145,254
                                  --------- ---------- ---------- ----------
    Gross profit                    358,116    455,652  1,353,089  1,498,537
    Selling, general &
     administrative expenses        259,215    312,506  1,096,505  1,124,419
    Asbestos-related charges

Goodwill and other intangible

asset impairments

    Interest expense                 12,151     15,500     54,460     60,476

Investment expense (income),

     net                              6,603     (2,823)     5,794    (13,512)
                                  --------- ---------- ---------- ----------

Income (loss) before income

     taxes                           80,147    130,469    196,330    327,154
    Provision (benefit) for
     income taxes                    25,569     32,981     61,442     94,393
                                  --------- ---------- ---------- ----------
    Net Income (Loss)               $54,578    $97,488   $134,888   $232,761
                                  ========= ========== ========== ==========
    Basic earnings (loss) per
     share of common stock            $0.43      $0.81      $1.07      $1.94
                                  ========= ========== ========== ==========

Diluted earnings (loss) per

     share of common stock            $0.43      $0.75      $1.05      $1.81
                                  ========= ========== ========== ==========

Average shares of common

stock outstanding - basic 126,603 120,296 126,373 120,151

                                  ========= ========== ========== ==========

Average shares of common

stock outstanding - diluted 127,499 130,569 128,255 130,539

                                  ========= ========== ========== ==========


    (a)  Adjusted figures presented remove the impact of the asbestos-
         related charge recorded during the fourth fiscal quarter ended May
         31, 2008, and the impact of the goodwill and other intangibles
         impairments recorded during the fourth fiscal quarter ended May
         31, 2009.


SUPPLEMENTAL SEGMENT INFORMATION

    IN THOUSANDS

                                                 AS REPORTED
                                  ------------------------------------------
                                   Three Months Ended        Year Ended
                                         May 31,               May 31,
                                  -------------------- ---------------------
                                     2009       2008       2009      2008
                                  ---------- --------- ---------- ----------
                                             (Unaudited)
                                  -------------------------------

    Industrial Segment             $536,106   $685,986 $2,265,957 $2,367,970
    Consumer Segment                321,235    389,985  1,102,210  1,275,821
                                  --------- ---------- ---------- ----------
       Total                       $857,341 $1,075,971 $3,368,167 $3,643,791
                                  ========= ========== ========== ==========
    Gross Profit:
    Industrial Segment             $229,791   $298,413   $942,820   $999,989
    Consumer Segment                128,325    157,239    410,269    498,548
                                  --------- ---------- ---------- ----------
       Total                       $358,116   $455,652 $1,353,089 $1,498,537
                                  ========= ========== ========== ==========

Income (Loss) Before Income

     Taxes (b):
    Industrial Segment
       Income Before Income
        Taxes (b)                   $34,781    $89,202   $176,116   $259,630
       Interest (Expense),
        Net (c)                        (439)      (220)      (676)    (2,188)
                                  --------- ---------- ---------- ----------
       EBIT (d)                     $35,220    $89,422   $176,792   $261,818
                                  ========= ========== ========== ==========
    Consumer Segment
       Income Before Income
        Taxes (b)                   $51,523    $63,927   $102,311   $155,600
       Interest (Expense),
        Net (c)                      (1,091)    (2,746)    (4,529)    (5,451)
                                  --------- ---------- ---------- ----------
       EBIT (d)                     $52,614    $66,673   $106,840   $161,051
                                  ========= ========== ========== ==========
    Corporate/Other
       (Expense) Before Income
         Taxes (b)                 $(21,619) $(310,760)  $(97,559) $(376,176)
       Interest (Expense),
        Net (c)                     (17,224)    (9,711)   (55,049)   (39,325)
                                  --------- ---------- ---------- ----------
       EBIT (d)                     $(4,395) $(301,049)  $(42,510) $(336,851)
                                    ========= ========== ========== ==========

Consolidated

            Income Before Income
             Taxes (b)              $64,685  $(157,631)  $180,868    $39,054
            Interest (Expense),
             Net (c)                (18,754)   (12,677)   (60,254)   (46,964)
                                  --------- ---------- ---------- ----------
            EBIT (d)                $83,439  $(144,954)  $241,122    $86,018
                                  ========= ========== ========== ==========



                                                ADJUSTED (a)
                                  ------------------------------------------
                                   Three Months Ended        Year Ended
                                         May 31,               May 31,
                                  -------------------- ---------------------
                                     2009       2008       2009      2008
                                  ---------- --------- ---------- ----------
                                                  (Unaudited)
                                  ------------------------------------------

    Net Sales:
    Industrial Segment             $536,106   $685,986 $2,265,957 $2,367,970
    Consumer Segment                321,235    389,985  1,102,210  1,275,821
                                  --------- ---------- ---------- ----------
      Total                        $857,341 $1,075,971 $3,368,167 $3,643,791
                                  ========= ========== ========== ==========

    Gross Profit:
    Industrial Segment             $229,791   $298,413   $942,820   $999,989
    Consumer Segment                128,325    157,239    410,269    498,548
                                  --------- ---------- ---------- ----------
      Total                        $358,116   $455,652 $1,353,089 $1,498,537
                                  ========= ========== ========== ==========

Income (Loss) Before Income

     Taxes (b):
    Industrial Segment
      Income Before Income
       Taxes (b)                    $50,243    $89,202   $191,578   $259,630
      Interest (Expense),
       Net (c)                         (439)      (220)      (676)    (2,188)
                                  --------- ---------- ---------- ----------
      EBIT (d)                      $50,682    $89,422   $192,254   $261,818
                                  ========= ========== ========== ==========
    Consumer Segment
      Income Before Income
       Taxes (b)                    $51,523    $63,927   $102,311   $155,600
      Interest (Expense),
       Net (c)                       (1,091)    (2,746)    (4,529)    (5,451)
                                  --------- ---------- ---------- ----------
      EBIT (d)                      $52,614    $66,673   $106,840   $161,051
                                  ========= ========== ========== ==========
    Corporate/Other
      (Expense) Before Income
       Taxes (b)                   $(21,619)  $(22,660)  $(97,559)  $(88,076)
      Interest (Expense),
       Net (c)                      (17,224)    (9,711)   (55,049)   (39,325)
                                  --------- ---------- ---------- ----------
      EBIT (d)                      $(4,395)  $(12,949)  $(42,510)  $(48,751)
                                  ========= ========== ========== ==========
    Consolidated
           Income Before Income
            Taxes (b)               $80,147   $130,469   $196,330   $327,154
           Interest (Expense),
            Net (c)                 (18,754)   (12,677)   (60,254)   (46,964)
                                  --------- ---------- ---------- ----------
          EBIT (d)                  $98,901   $143,146   $256,584   $374,118
                                  ========= ========== ========== ==========

(a) Adjusted figures presented remove the impact of the asbestos-related

charge recorded during the fourth fiscal quarter ended May 31, 2008,

and the impact of the goodwill and other intangibles impairments

recorded during the fourth fiscal quarter ended May 31, 2009.

(b) The presentation includes a reconciliation of Income (Loss) Before

Income Taxes, a measure defined by Generally Accepted Accounting

Principles (GAAP) in the United States, to EBIT.

(c) Interest (expense), net includes the combination of interest expense

and investment expense (income), net.

(d) EBIT is defined as earnings (loss) before interest and taxes. We

        evaluate the profit performance of our segments based on income before
        income taxes, but also look to EBIT as a performance evaluation
        measure because interest expense is essentially related to corporate
        acquisitions, as opposed to segment operations.  We believe EBIT is
        useful to investors for this purpose as well, using EBIT as a metric
        in their investment decisions.  EBIT should not be considered an
        alternative to, or more meaningful than, operating income as
        determined in accordance with GAAP, since EBIT omits the impact of
        interest and taxes in determining operating performance, which
        represent items necessary to our continued operations, given our level
        of indebtedness and ongoing tax obligations.  Nonetheless, EBIT is a
        key measure expected by and useful to our fixed income investors,
        rating agencies and the banking community all of whom believe, and we
        concur, that this measure is critical to the capital markets' analysis
        of our segments' core operating performance.  We also evaluate EBIT
        because it is clear that movements in EBIT impact our ability to
        attract financing.  Our underwriters and bankers consistently require
        inclusion of this measure in offering memoranda in conjunction with
        any debt underwriting or bank financing.  EBIT may not be indicative
        of our historical operating results, nor is it meant to be predictive
        of potential future results.


CONSOLIDATED BALANCE SHEETS

    IN THOUSANDS

                                                  May 31, 2009  May 31, 2008
                                                  ------------  ------------
                                                   (Unaudited)
    Assets
    Current Assets
      Cash and cash equivalents                       $253,387      $231,251
      Trade accounts receivable                 661,593       841,795
      Allowance for doubtful accounts           (22,934)      (24,554)
                                                -------       -------
      Net trade accounts receivable                    638,659       817,241
      Inventories                                      406,175       476,149
      Deferred income taxes                             44,540        37,644
      Prepaid expenses and other current assets        210,155       221,690
                                                       -------       -------
      Total current assets                           1,552,916     1,783,975
                                                     ---------     ---------

    Property, Plant and Equipment, at Cost           1,056,555     1,054,719

Allowance for depreciation and amortization (586,452) (556,998)

                                                      --------      --------
      Property, plant and equipment, net               470,103       497,721
                                                       -------       -------

Other Assets

      Goodwill                                         856,166       908,358
      Other intangible assets, net of
       amortization                                    358,097       384,370
      Deferred income taxes, non-current                92,500        88,754
      Other                                             80,139       100,389
                                                        ------       -------
      Total other assets                             1,386,902     1,481,871
                                                     ---------     ---------

    Total Assets                                    $3,409,921    $3,763,567
                                                    ==========    ==========

Liabilities and Stockholders' Equity

Current Liabilities

      Accounts payable                                $294,814      $411,448
      Current portion of long-term debt                168,547         6,934
      Accrued compensation and benefits                124,138       151,493
      Accrued loss reserves                             77,393        71,981
      Asbestos-related liabilities                      65,000        65,000
      Other accrued liabilities                        119,270       139,505
                                                       -------       -------
      Total current liabilities                        849,162       846,361
                                                       -------       -------

Long-Term Liabilities

      Long-term debt, less current maturities          762,295     1,066,687
      Asbestos-related liabilities                     425,328       494,745
      Other long-term liabilities                      205,650       192,412
      Deferred income taxes                             23,815        26,806
                                                        ------        ------
      Total long-term liabilities                    1,417,088     1,780,650
                                                     ---------     ---------
         Total liabilities                           2,266,250     2,627,011
                                                     ---------     ---------

Stockholders' Equity

      Preferred stock; none issued
      Common stock (outstanding 128,501; 122,189)        1,285         1,222
      Paid-in capital                                  780,967       612,441
      Treasury stock, at cost                          (50,453)       (6,057)
      Accumulated other comprehensive income
       (loss)                                          (31,557)      101,162
      Retained earnings                                443,429       427,788
                                                       -------       -------
      Total stockholders' equity                     1,143,671     1,136,556
                                                     ---------     ---------

Total Liabilities and Stockholders' Equity $3,409,921 $3,763,567

                                                    ==========    ==========



CONSOLIDATED STATEMENTS OF CASH FLOWS

    IN THOUSANDS

                                                           Year Ended
                                                           ----------
                                                      May 31,     May 31,
                                                       2009        2008
                                                     --------    --------
                                                    (Unaudited)

Cash Flows From Operating Activities:

      Net income                                     $119,616     $47,709
      Adjustments to reconcile net income to net
        cash provided by operating activities:
           Depreciation                                62,379      62,238
           Amortization                                22,765      23,128
           Goodwill and other intangible
            asset impairments                          15,462
           Other-than-temporary
            impairments on marketable
            securities                                 15,062       1,409
           Provision for asbestos-related
            liabilities                                           288,100
           Deferred income taxes                        1,136     (73,888)
           Other                                        6,692      11,751

Changes in assets and liabilities, net of effect

from purchases and sales of businesses:

           Decrease (increase) in receivables         181,617     (55,056)
           Decrease (increase) in inventory            75,014     (28,361)
           Decrease (increase) in prepaid expenses
            and other current and long-term assets     18,024      (5,858)
           (Decrease) increase in accounts payable   (119,327)     10,654
           (Decrease) increase in accrued
            compensation and benefits                 (29,039)     15,810
           Increase (decrease) in accrued
            loss reserves                               5,167      (5,382)
           (Decrease) increase in other accrued
            liabilities                               (11,695)     14,426
           Payments made for asbestos-related
            claims                                    (69,417)    (82,623)
           Other                                      (26,461)     10,657
                                                      -------      ------
    Cash From Operating Activities                    266,995     234,714
                                                      -------     -------

Cash Flows From Investing Activities:

      Capital expenditures                            (54,986)    (71,840)
      Acquisition of businesses, net
       of cash acquired                               (16,669)   (123,130)
      Purchase of marketable securities               (75,410)   (110,225)
      Proceeds from sales of marketable
       securities                                      65,862      92,383
      Proceeds from the sales of assets
       or businesses                                      852      46,544
      Other                                            (1,196)     (2,946)
                                                       ------      ------
             Cash (Used For) Investing
              Activities                              (81,547)   (169,214)
                                                      -------    --------

Cash Flows From Financing Activities:

      Additions to long-term and short-term debt       56,816     251,765
      Reductions of long-term and short-term debt     (51,412)   (181,074)
      Cash dividends                                 (101,836)    (90,638)
      Repurchase of stock                             (45,360)     (6,057)
      Exercise of stock options                         3,057      10,689
      Tax benefit from exercise of
       stock options                                      131       3,792
                                                          ---       -----
             Cash (Used For) Financing
              Activities                             (138,604)    (11,523)
                                                     --------     -------

Effect of Exchange Rate Changes

     on Cash and Cash Equivalents                     (24,708)     18,258
                                                      -------      ------
    Net Change in Cash and Cash Equivalents            22,136      72,235

Cash and Cash Equivalents at Beginning

     of Period                                        231,251     159,016
                                                      -------     -------

Cash and Cash Equivalents at End

     of Period                                       $253,387    $231,251
                                                     ========    ========


SOURCE RPM International Inc.

CONTACT:
P. Kelly Tompkins
executive vice president - administration and chief financial officer
RPM International Inc.
+1-330-273-5090
ktompkins@rpminc.com


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